Global Markets Recap: July 23, 2025 – U.S., Europe, Asia Rally | Full Outlook for July 24, 2025
Markets around the world delivered a strong performance on Wednesday, July 23, 2025, as investor sentiment improved following a series of better-than-expected earnings results and optimism about global economic resilience. From Wall Street to Tel Aviv, indices broadly climbed, with risk assets catching a bid and volatility cooling across the board. As we head into Thursday, July 24, traders are eyeing central bank commentary and macro data releases to determine whether this momentum can hold.
📈 U.S. Stocks Surge to Fresh Highs
U.S. equity markets rallied on Wednesday with small caps leading the charge:
Russell 2000 jumped +1.53% to close at 2,283.13, reflecting strong breadth across smaller companies.
Dow Jones Industrial Average climbed +1.14%, finishing at 45,010.29, as blue chips recovered from earlier weakness.
S&P 500 gained +0.78% to 6,358.91, setting another record close.
Nasdaq Composite rose +0.61% to 21,020.02, lifted by continued strength in technology shares.
Volatility fell sharply, with the VIX index dropping -6.85% to 15.37, its lowest level in weeks, signaling growing confidence among investors. The U.S. Dollar Index eased -0.05% to 97.17, reflecting a mild risk-on tone in currency markets.
🇪🇺 European Markets Maintain Uptrend
Europe followed the U.S. lead with widespread gains:
CAC 40 (France) added +1.37%, closing at 7,850.43.
MSCI Europe Index rose +1.18%, supported by strength across industrials and financials.
EURO STOXX 50 advanced +1.02% to 5,344.25, while Germany’s DAX climbed +0.83% to 24,240.82.
FTSE 100 (UK) lagged slightly but still posted a +0.42% gain to reach 9,061.49.
Currency indices also reflected mild optimism, with the British Pound Index up +0.38% and the Euro Index higher by +0.15%.
🌏 Asia-Pacific Equities Advance
Asian markets extended their recent rebound, showing resilience amid cautious optimism:
Nikkei 225 (Japan) surged +1.61% to a new high of 41,833.65, continuing its leadership among global indices.
Hang Seng (Hong Kong) gained +0.59%, while Shanghai Composite (000001.SS) ticked up +0.48% to 3,599.44.
KOSPI (South Korea) added +0.39% to 3,196.10, supported by tech and semiconductor stocks.
S&P/ASX 200 (Australia) bucked the trend, slipping -0.30%, as resource stocks weighed on sentiment.
Currency markets in Asia saw modest gains, with the Australian Dollar Index up +0.72% and the Japanese Yen Index up +0.09%.
🇮🇱 Tel Aviv Stocks Post Strong Gains
Israeli equities were among the standout performers on Wednesday:
TA-35 index rose +1.09% to 3,071.45, driven by strength in banking and tech sectors.
TA-90 gained +1.38%, and the broader TA-125 added +1.17%, reflecting widespread participation.
Sector-specific indices such as TA Value 125 and TA Sector-Balance rose +1.56% and +1.48% respectively.
Bond indices were relatively flat, with the All-Bond Index inching up +0.01%, while Tel-Bond 60 CPI-linked dipped -0.07%. Market breadth was positive, with 267 bonds advancing and 215 declining.
🔮 What to Watch on Thursday, July 24, 2025
Looking ahead to Thursday’s session, investors will be closely watching:
U.S. economic data, including jobless claims and housing reports.
Earnings releases from major tech and consumer goods firms, which could sway sentiment.
Central bank commentary in both the U.S. and Europe, as policymakers weigh inflation against slowing global growth.
Geopolitical developments, particularly in Asia-Pacific, which could impact risk sentiment.
While Wednesday’s rally suggests strong bullish momentum, sustainability will depend on economic clarity and corporate performance in the coming days.
Stay tuned for further updates as markets navigate this critical mid-week juncture.